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The Differential Use of Information by Experienced and Novice Auditors in the Performance of Ill‐Structured Audit Tasks *
Author(s) -
Earley Christine E.
Publication year - 2002
Publication title -
contemporary accounting research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.769
H-Index - 99
eISSN - 1911-3846
pISSN - 0823-9150
DOI - 10.1506/xwdp-phrh-q3j9-xlxl
Subject(s) - audit , valuation (finance) , information processing theory , psychology , cognition , accounting , information processing , task (project management) , applied psychology , actuarial science , social psychology , business , cognitive psychology , management , economics , neuroscience
The experiment reported in this paper tests a theoretical model of experienced and novice auditors' information use. The model, based on social cognition research, posits that when judgements are sequential, the information encountered first affects the processing of subsequent information. Specifically, initial information that is in line with expectations results in more superficial processing of subsequent information than initial information that violates expectations. The judgements of 13 experienced and 26 novice auditors were analyzed to determine whether the model is descriptive of auditors' judgements in an ill‐structured task setting (real estate valuation). Results lend support for the model. The implications of the results and the model's impact on audit effectiveness are discussed.